https://www.taxtmi.com/article/detailed?id=16548 The second proviso to section 16(2) of the CGST Act and rule 37 require reversal of input tax credit, with interest, where payment of supply value and tax is not made within 180 days, subject to re-availment after payment. The commentary contends that "fails to pay" should denote default of a matured contractual obligation, not legitimate deferred-payment arrangements, retention money, phased supplies, or disputed payments. It argues for a fact-sensitive and harmonious interpretation that preserves anti-evasion objectives while avoiding interest and reversal consequences for bona fide commercial transactions. en-us Mon, 01 Jun 2026 08:27:20 +0530 Mon, 01 Jun 2026 08:27:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16548 The second proviso to section 16(2) of the CGST Act and rule 37 require reversal of input tax credit, with interest, where payment of supply value and tax is not made within 180 days, subject to re-availment after payment. The commentary contends that "fails to pay" should denote default of a matured contractual obligation, not legitimate deferred-payment arrangements, retention money, phased supplies, or disputed payments. It argues for a fact-sensitive and harmonious interpretation that preserves anti-evasion objectives while avoiding interest and reversal consequences for bona fide commercial transactions. Articles Goods and Services Tax - GST Mon, 01 Jun 2026 08:27:20 +0530 https://www.taxtmi.com/article/detailed?id=16548